Deutsche Bank's Equity Prime Services Group revealed today the results of Part One of its "2003 Institutional Survey on Alternative Investment Trends".
Deutsche Bank believes the survey represents at least half the total assets presently invested in hedge funds and is one of the largest surveys ever conducted on the hedge fund marketplace.
This year's survey covers 376 alternative asset investors representing over US$350 billion of assets invested in hedge funds. Investors surveyed were drawn from Asia, Europe and North America, and include: wealthy private individuals, funds of funds, large family offices, endowments, foundations, banks, insurance companies, corporate and state pension plans.
The survey results provide statistical insight into the characteristics of alternative asset investors, the way they currently invest, expectations regarding their future investments and their performance predictions for the first half of 2003.
John Dyment, Deutsche Bank's Global Head of Capital Introduction Services, said: "This survey provides a particularly comprehensive analysis of alternative investor characteristics and behavior as it draws upon the extensive relationships that Deutsche Bank maintains with these investors worldwide".
Mr Dyment said: "The results affirm that existing alternative asset investors are continuing to redirect their portfolio allocations into hedge fund products. Responses do, however, indicate a desire to geographically diversify alternative asset holdings by decreasing exposure to US-based funds in favor of those in Europe and Asia."
Highlights of the survey results include the following:
Approximately half of those surveyed are defined as a fund of funds and two-thirds of surveyed investors have been investing in alternative assets for more than five years.
Investor responses indicate that the vast majority of their portfolio is invested in alternative assets, with 60 per cent of respondents allocating over 70 per cent of portfolio assets to hedge funds.
The majority of respondents also indicate that they intend to increase the percent composition of alternative assets in their portfolio in 2003.
Part two of this survey will be published in March 2003 and will focus on aspects of investor behavior such as risk management, fees, capacity and investment requirements.